42 affordable housing units planned for old shoe factory in Dover

Saturday

Nov 17, 2012 at 3:15 AM

By Michelle Kingstonmkingston@fosters.com

DOVER — Construction of 42 new units of affordable housing in Dover is expected to begin in the spring.City Planning Director Chris Parker said the developers are planning on getting their finances in order this month and are expected to close on the Dover Street site just after the New Year. Sitework and construction of the renovation of the 1885 shoe factory mill at 1 Dover St., just outside of downtown Dover, will begin thereafter. Marty Chapman, executive director of The Housing Partnership in Portsmouth, said the project has been in predevelopment stages for over a year.“The project … has received all of the necessary zoning and planning approvals from the City of Dover. The project has also received a preliminary reservation of tax credit financing from New Hampshire Housing, the primary source of funding for the project,” he said. “We are also waiting to learn the result of a separate funding application the Federal Home Loan Bank of Boston, submitted in cooperation with Centrix Bank, our local banking partner.”New Hampshire Housing Finance Authority, a public benefit corporation established by the state legislature that operates a number of programs designed to assist low- and moderate-income housing, was approved for this Low Income Housing Tax Credit funding for six developments of affordable housing across New Hampshire.The LIHTC program grants federal income tax credits over a 10-year period to eligible projects typically purchased by private investors who become limited partners in the projects, helping to reduce the need for public subsidies. According to a public statement, “The result is that the approximately $2.8 million in tax credits allocated each year can be leveraged into $22 to $24 million in project funding — funding that creates local jobs and keeps investment dollars in the state.”The LIHTC program is federally funded, encouraging private investment in new, affordable rental housing. It will bring an estimated 180 units to the state and close to 500 jobs while the apartments are under construction. In addition to Dover, affordable housing will be brought to Berlin, Hanover, Marlborough, Milford and Wolfeboro. Each project will have a different developer.“The LIHTC Program is a successful example of a public-private partnership that provides a tremendous boost to our state’s economy,” said Dean Christon, executive director of New Hampshire Housing. “These projects are providing much-needed housing for our seniors and the workforce while also helping New Hampshire’s housing market become stronger.”Dover’s old shoe factory will be renovated into a complex called Woodbury Mill and use federal historic tax credits to transform into 42 low-income apartments sponsored and developed by The Housing Partnership in Portsmouth.The total project cost for Woodbury Mill is approximately $9.8 million. Chapman said this estimate includes the cost to purchase the privately-owned property, the cost to perform historically sensitive restoration of hundreds of building elements to render it eligible for listing on the National Register of Historic Places, the cost to construct 42 units of housing in a former warehouse, the cost to improve the site and grounds and other soft project costs including the architectural and engineering fees, environmental testing and abatement and legal fees.These apartments are considered affordable housing, being offered at below-market rental prices to income-qualified working households. They are also considered Tax Credit housing, being projects that are funded in part by the federal LIHTC program.Chapman said Dover is a great place for this project, with many supporting factors that The Housing Partnership looks for when deciding on where to locate this type of housing. “Access to local and regional public transportation, an economically vibrant and pedestrian friendly downtown, a healthy mix of public and private services, and, most importantly, a willingness to promote a range of housing options for its working residents,” he said.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.